Smoking-induced illnesses annually claim over 300,000 American lives and account for millions of disability days. In economic terms, cigarette smoking drains $30 billion from the economy each year. Since the Surgeon General's Report in 1964, governments and voluntary agencies have adopted numerous policies to inform the public about the hazards of smoking and to encourage the reduction of smoking. Yet there is a paucity of understanding of the effect of these policies. The proposed research addresses this knowledge gap through a comprehensive study of several smoking policies and policy issues. Both original and secondary data collection will be used to carefully assess the costs of smoking and their distribution, the costs to the agricultural economy of successful anti-smoking initiatives, and the costs of the initiatives themselves. Time series regression analysis of national cigarette consumption data will be used to examine the aggregate consumption effects of classes of policies, while cross section analysis of state data will provide refined understanding of the effects of specific policies (e.g., the recent spate of "clean indoor air" laws). Based on the literature on the health effects of smoking, consumption effects will be translated into a range of plausible health outcomes which will then be associated with economic benefits. While several of the components of the study are of interest in and of themselves, they will also be combined in benefit-cost analyses of specific policies and an assessment of the aggregate benefits and costs of the anti-smoking campaign. In order to test the significance of assumptions and results, liberal and creative use will be made of sensitivity analysis.